ATCO LTD -CLASS I (ACO-X.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACO-X - CA0467894006 - Common Stock
55.75 CAD
+0.07 (+0.13%)
We assign a fundamental rating of 5 out of 10 to ACO-X. ACO-X was compared to 20 industry peers in the Multi-Utilities industry. ACO-X has only an average score on both its financial health and profitability. ACO-X is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ACO-X had positive earnings in the past year.
In the past year ACO-X had a positive cash flow from operations.
ACO-X had positive earnings in each of the past 5 years.
ACO-X had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.55%, ACO-X is in line with its industry, outperforming 45.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.08%, ACO-X belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
ACO-X has a Return On Invested Capital of 3.73%. This is in the lower half of the industry: ACO-X underperforms 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACO-X is in line with the industry average of 3.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 9.08% | ||
| ROIC | 3.73% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
1.3 Margins
Looking at the Profit Margin, with a value of 8.38%, ACO-X is in line with its industry, outperforming 45.00% of the companies in the same industry.
ACO-X's Profit Margin has declined in the last couple of years.
The Operating Margin of ACO-X (24.56%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ACO-X has declined.
ACO-X has a Gross Margin (74.90%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ACO-X has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.56% | ||
| PM (TTM) | 8.38% | ||
| GM | 74.9% |
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
ACO-X has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ACO-X has about the same amout of shares outstanding than it did 1 year ago.
ACO-X has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ACO-X is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that ACO-X is in the distress zone and has some risk of bankruptcy.
With an excellent Altman-Z score value of 0.77, ACO-X belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Debt to FCF ratio of ACO-X is 27.90, which is on the high side as it means it would take ACO-X, 27.90 years of fcf income to pay off all of its debts.
ACO-X's Debt to FCF ratio of 27.90 is amongst the best of the industry. ACO-X outperforms 100.00% of its industry peers.
ACO-X has a Debt/Equity ratio of 2.64. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ACO-X (2.64) is worse than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 27.9 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.73
WACC5.08%
2.3 Liquidity
ACO-X has a Current Ratio of 1.81. This is a normal value and indicates that ACO-X is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.81, ACO-X belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.66 indicates that ACO-X should not have too much problems paying its short term obligations.
ACO-X's Quick ratio of 1.66 is amongst the best of the industry. ACO-X outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.19% over the past year.
The Earnings Per Share has been growing slightly by 6.10% on average over the past years.
Looking at the last year, ACO-X shows a small growth in Revenue. The Revenue has grown by 7.75% in the last year.
ACO-X shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.98% yearly.
EPS 1Y (TTM)10.19%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%13.58%
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
3.2 Future
ACO-X is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.04% yearly.
The Revenue is expected to grow by 0.61% on average over the next years.
EPS Next Y9.29%
EPS Next 2Y5.14%
EPS Next 3Y5.04%
EPS Next 5YN/A
Revenue Next Year-5%
Revenue Next 2Y-1%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.28, the valuation of ACO-X can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ACO-X is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.59. ACO-X is valued rather cheaply when compared to this.
ACO-X is valuated reasonably with a Price/Forward Earnings ratio of 11.76.
ACO-X's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. ACO-X is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ACO-X is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ACO-X is valued a bit cheaper than 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.47 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.32
PEG (5Y)2.01
EPS Next 2Y5.14%
EPS Next 3Y5.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.63%, ACO-X has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.55, ACO-X's dividend is way lower than its industry peers. On top of this 95.00% of the companies listed in the same industry pay a better dividend than ACO-X!
ACO-X's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
The dividend of ACO-X has a limited annual growth rate of 3.93%.
ACO-X has paid a dividend for at least 10 years, which is a reliable track record.
ACO-X has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.93%
Div Incr Years31
Div Non Decr Years34
5.3 Sustainability
52.20% of the earnings are spent on dividend by ACO-X. This is a bit on the high side, but may be sustainable.
ACO-X's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.2%
EPS Next 2Y5.14%
EPS Next 3Y5.04%
TSX:ACO-X (12/24/2025, 7:00:00 PM)
55.75
+0.07 (+0.13%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryMulti-Utilities
Earnings (Last)
Earnings (Next)
Inst Owners28.28%
Inst Owner ChangeN/A
Ins Owners0.68%
Ins Owner ChangeN/A
Market Cap6.25B
Revenue(TTM)5.14B
Net Income(TTM)431.00M
Analysts78.57
Price Target59.5 (6.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.96
Dividend Growth(5Y)3.93%
DP52.2%
Div Incr Years31
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.14%
Min EPS beat(2)-3.78%
Max EPS beat(2)8.05%
EPS beat(4)3
Avg EPS beat(4)2.22%
Min EPS beat(4)-3.78%
Max EPS beat(4)8.05%
EPS beat(8)7
Avg EPS beat(8)4.37%
EPS beat(12)9
Avg EPS beat(12)2.66%
EPS beat(16)12
Avg EPS beat(16)4.06%
Revenue beat(2)0
Avg Revenue beat(2)-9.84%
Min Revenue beat(2)-17.7%
Max Revenue beat(2)-1.99%
Revenue beat(4)0
Avg Revenue beat(4)-9.73%
Min Revenue beat(4)-18.52%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-11.91%
Revenue beat(12)0
Avg Revenue beat(12)-10.29%
Revenue beat(16)1
Avg Revenue beat(16)-9.26%
PT rev (1m)3.64%
PT rev (3m)4.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0.93%
EPS NY rev (3m)1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.28 | ||
| Fwd PE | 11.76 | ||
| P/S | 1.22 | ||
| P/FCF | 13.47 | ||
| P/OCF | 2.56 | ||
| P/B | 1.32 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)4.54
EY8.14%
EPS(NY)4.74
Fwd EY8.51%
FCF(TTM)4.14
FCFY7.42%
OCF(TTM)21.76
OCFY39.03%
SpS45.88
BVpS42.35
TBVpS30.16
PEG (NY)1.32
PEG (5Y)2.01
Graham Number65.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.55% | ||
| ROE | 9.08% | ||
| ROCE | 4.79% | ||
| ROIC | 3.73% | ||
| ROICexc | 3.92% | ||
| ROICexgc | 4.15% | ||
| OM | 24.56% | ||
| PM (TTM) | 8.38% | ||
| GM | 74.9% | ||
| FCFM | 9.02% |
ROA(3y)1.62%
ROA(5y)1.41%
ROE(3y)9.17%
ROE(5y)7.94%
ROIC(3y)3.92%
ROIC(5y)3.81%
ROICexc(3y)4.06%
ROICexc(5y)3.97%
ROICexgc(3y)4.27%
ROICexgc(5y)4.16%
ROCE(3y)5.04%
ROCE(5y)4.9%
ROICexgc growth 3Y1.58%
ROICexgc growth 5Y-6.25%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-6.55%
OM growth 3Y2.6%
OM growth 5Y-3.18%
PM growth 3Y14.9%
PM growth 5Y-4.41%
GM growth 3Y-0.25%
GM growth 5Y-1.16%
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 27.9 | ||
| Debt/EBITDA | 5.96 | ||
| Cap/Depr | 234.56% | ||
| Cap/Sales | 38.4% | ||
| Interest Coverage | 2.33 | ||
| Cash Conversion | 115.87% | ||
| Profit Quality | 107.66% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.66 | ||
| Altman-Z | 0.77 |
F-Score7
WACC5.08%
ROIC/WACC0.73
Cap/Depr(3y)212.07%
Cap/Depr(5y)195.52%
Cap/Sales(3y)33.77%
Cap/Sales(5y)31.75%
Profit Quality(3y)134.57%
Profit Quality(5y)187.54%
High Growth Momentum
Growth
EPS 1Y (TTM)10.19%
EPS 3Y8.59%
EPS 5Y6.1%
EPS Q2Q%13.58%
EPS Next Y9.29%
EPS Next 2Y5.14%
EPS Next 3Y5.04%
EPS Next 5YN/A
Revenue 1Y (TTM)7.75%
Revenue growth 3Y4.84%
Revenue growth 5Y0.98%
Sales Q2Q%6.09%
Revenue Next Year-5%
Revenue Next 2Y-1%
Revenue Next 3Y0.61%
Revenue Next 5YN/A
EBIT growth 1Y25.67%
EBIT growth 3Y7.57%
EBIT growth 5Y-2.22%
EBIT Next Year409.03%
EBIT Next 3Y77.89%
EBIT Next 5YN/A
FCF growth 1Y1.09%
FCF growth 3Y-8.79%
FCF growth 5Y2.94%
OCF growth 1Y16.42%
OCF growth 3Y5.63%
OCF growth 5Y7.34%
ATCO LTD -CLASS I / ACO-X.CA FAQ
What is the ChartMill fundamental rating of ATCO LTD -CLASS I (ACO-X.CA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ACO-X.CA.
Can you provide the valuation status for ATCO LTD -CLASS I?
ChartMill assigns a valuation rating of 5 / 10 to ATCO LTD -CLASS I (ACO-X.CA). This can be considered as Fairly Valued.
How profitable is ATCO LTD -CLASS I (ACO-X.CA) stock?
ATCO LTD -CLASS I (ACO-X.CA) has a profitability rating of 4 / 10.
What is the valuation of ATCO LTD -CLASS I based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ATCO LTD -CLASS I (ACO-X.CA) is 12.28 and the Price/Book (PB) ratio is 1.32.
How financially healthy is ATCO LTD -CLASS I?
The financial health rating of ATCO LTD -CLASS I (ACO-X.CA) is 5 / 10.